I think that a lot of analysts only looked at the previous two home console generations and ignored Nintendo and are going to slowly reverse their positions.
Something important to consider about the success of the DS and Wii is that it'll mean incredible software growth for Nintendo. The top titles on any Nintendo console are inevitably first-party (for the most part) and they're cashing in on that in a big way. While DS software sales have set their stock to a new high, I think it'll continue to climb as their big first-party Wii titles start to hit shelves. The releases of Super Paper Mario, Mario Party 8, Smash Bros Brawl, Super Mario Galaxy, Metroid Prime 3 and other smaller games will tip their 2007 profits over 2006 easily. Hopefully their management will remember the lessons of the N64/Gamecube eras and use this regained influence to better their relationships with 3rd party developers.
DISCLAIMER: I don't own Nintendo stock, but sure wished I did ;) (just finished undergrad).
3
Something important to consider about the success of the DS and Wii is that it'll mean incredible software growth for Nintendo. The top titles on any Nintendo console are inevitably first-party (for the most part) and they're cashing in on that in a big way. While DS software sales have set their stock to a new high, I think it'll continue to climb as their big first-party Wii titles start to hit shelves. The releases of Super Paper Mario, Mario Party 8, Smash Bros Brawl, Super Mario Galaxy, Metroid Prime 3 and other smaller games will tip their 2007 profits over 2006 easily. Hopefully their management will remember the lessons of the N64/Gamecube eras and use this regained influence to better their relationships with 3rd party developers.
DISCLAIMER: I don't own Nintendo stock, but sure wished I did ;) (just finished undergrad).